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Affiliate Marketing

 An Introduction
BigRock

          What is Affiliate Marketing?
     Affiliate Marketing is a big word, loaded
     with meaning but it simply means
     marketing the products of a firm that you
     are associated with.


     Affiliate Marketing is a performance-
     based marketing channel where the
     business rewards the affiliate for every
     visitor or a customer brought about by
     the affiliate’s own marketing efforts.      INDUSTRY




01
BigRock




          Affiliate Marketing
                Process



                                INDUSTRY




02
BigRock
Why is it critical for an Affiliate?
 1. Low Investment Budget

 2. No Need For Inventories

 3. Passive Income Through Leverage Strategy




                                               INDUSTRY




03
BigRock

                         Affiliate Eco-System

     1. Publisher/Affiliate


     2. Affiliate Network – marketplace


     3. Merchant – runs the program




                                                INDUSTRY




04
BigRock

          Affiliate Eco-System




                                 INDUSTRY




05
Affiliate Marketing

   How It Pays
BigRock
     Types of Models the Affiliate Programs consist of.

      1. CPA – Cost per Action

      Here, the merchant site pays an affiliate only when a customer referred by an
      affiliate makes a purchase.

      2. CPL – Cost per Lead

      Companies with these programs that adopt this model pay their affiliates
      based on the number of visitors they refer who sign up as leads.

      3. CPC – Cost per Click
                                                                            INDUSTRY
      In this model, the merchant site pays the affiliate based on the number of
      visitors who click on the link to come to the merchant’s site.




06
BigRock
 4. CPM – Cost per 1000 Impressions

 This refers to the cost of internet marketing campaigns where advertisers pay for
 every 1000 times their ad is displayed, usually in the form of a banner ad on a
 website, but can also refer to advertisements in Email advertising.




                                                                          INDUSTRY




07
BigRock
Pros & Cons of the Affiliate Models :
• Companies which do not have reliable tracking systems to monitor actions have
  difficulties managing cost per acquisition affiliate programs. Several affiliate
  networks specialized in cost per action advertising can help overcome these
  challenges.

• CPL (Cost-per-lead) is based on the consumer completing a form (such as
  subscribing to an email newsletter). CPL has a lower financial risk for the
  Advertiser, compared with CPM (Cost per Thousand impressions) and CPC.

• CPC (Cost-per-Click) pricing models, commonly found on search engines,
  compel advertisers to pay for clicks from people that might never sign up on the
  advertiser landing page.
                                                                         INDUSTRY
• In a CPM (Cost-per-Thousand) pricing model, advertisers are forced
  to pay for wasted impressions.



08
Affiliate Marketing

The Specifications of an Affiliate
            Program
BigRock
Tracking mechanisms in the Affiliate Marketing Process :-
Cookie period :
 An Affiliate Cookie is alive for a time period as specified by the merchant. BigRock has
 a 90 day cookie period as compared with the other Affiliate Marketing programs which
 usually have a 30-60 day cookie period. This makes it easier for the affiliates to earn
 commissions on sales that happens within the cookie period.

Affiliate code :

     An Affiliate Code helps to identify when transactions take place. The Affiliate Code
     acts as a piece of information passed everytime a visitor completes an action
     specified by the merchant. Most affiliate codes are placed on the order completion
     page of the Merchant’s website.
                                                                                 INDUSTRY




09
BigRock
Simply put, affiliate programs are arrangements in which an online merchant
Web site pays affiliate Web sites a commission to send them traffic.




                                                                    INDUSTRY




 10
BigRock
These affiliate Web sites post links to the merchant site and are paid
according to a particular agreement.




                                                                         INDUSTRY
Recruiting affiliates is an excellent way to sell products online, but
it can also be a cheap and effective marketing strategy; it’s a good
way to get the word out about your site.



 11
BigRock
          BigRock Affiliate Program




                                      INDUSTRY




12
Thank You

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Affiliate Marketing An Introduction

  • 1. Affiliate Marketing An Introduction
  • 2. BigRock What is Affiliate Marketing? Affiliate Marketing is a big word, loaded with meaning but it simply means marketing the products of a firm that you are associated with. Affiliate Marketing is a performance- based marketing channel where the business rewards the affiliate for every visitor or a customer brought about by the affiliate’s own marketing efforts. INDUSTRY 01
  • 3. BigRock Affiliate Marketing Process INDUSTRY 02
  • 4. BigRock Why is it critical for an Affiliate? 1. Low Investment Budget 2. No Need For Inventories 3. Passive Income Through Leverage Strategy INDUSTRY 03
  • 5. BigRock Affiliate Eco-System 1. Publisher/Affiliate 2. Affiliate Network – marketplace 3. Merchant – runs the program INDUSTRY 04
  • 6. BigRock Affiliate Eco-System INDUSTRY 05
  • 7. Affiliate Marketing How It Pays
  • 8. BigRock Types of Models the Affiliate Programs consist of. 1. CPA – Cost per Action Here, the merchant site pays an affiliate only when a customer referred by an affiliate makes a purchase. 2. CPL – Cost per Lead Companies with these programs that adopt this model pay their affiliates based on the number of visitors they refer who sign up as leads. 3. CPC – Cost per Click INDUSTRY In this model, the merchant site pays the affiliate based on the number of visitors who click on the link to come to the merchant’s site. 06
  • 9. BigRock 4. CPM – Cost per 1000 Impressions This refers to the cost of internet marketing campaigns where advertisers pay for every 1000 times their ad is displayed, usually in the form of a banner ad on a website, but can also refer to advertisements in Email advertising. INDUSTRY 07
  • 10. BigRock Pros & Cons of the Affiliate Models : • Companies which do not have reliable tracking systems to monitor actions have difficulties managing cost per acquisition affiliate programs. Several affiliate networks specialized in cost per action advertising can help overcome these challenges. • CPL (Cost-per-lead) is based on the consumer completing a form (such as subscribing to an email newsletter). CPL has a lower financial risk for the Advertiser, compared with CPM (Cost per Thousand impressions) and CPC. • CPC (Cost-per-Click) pricing models, commonly found on search engines, compel advertisers to pay for clicks from people that might never sign up on the advertiser landing page. INDUSTRY • In a CPM (Cost-per-Thousand) pricing model, advertisers are forced to pay for wasted impressions. 08
  • 11. Affiliate Marketing The Specifications of an Affiliate Program
  • 12. BigRock Tracking mechanisms in the Affiliate Marketing Process :- Cookie period : An Affiliate Cookie is alive for a time period as specified by the merchant. BigRock has a 90 day cookie period as compared with the other Affiliate Marketing programs which usually have a 30-60 day cookie period. This makes it easier for the affiliates to earn commissions on sales that happens within the cookie period. Affiliate code : An Affiliate Code helps to identify when transactions take place. The Affiliate Code acts as a piece of information passed everytime a visitor completes an action specified by the merchant. Most affiliate codes are placed on the order completion page of the Merchant’s website. INDUSTRY 09
  • 13. BigRock Simply put, affiliate programs are arrangements in which an online merchant Web site pays affiliate Web sites a commission to send them traffic. INDUSTRY 10
  • 14. BigRock These affiliate Web sites post links to the merchant site and are paid according to a particular agreement. INDUSTRY Recruiting affiliates is an excellent way to sell products online, but it can also be a cheap and effective marketing strategy; it’s a good way to get the word out about your site. 11
  • 15. BigRock BigRock Affiliate Program INDUSTRY 12